# In the matter of Sembmarine Kakinada Limited

> NCLT judgment dated 2024-11-06. Citation: TCN-2024-NCLT-00291. The case pertains to the liquidation of M/s. Sembmarine Kakinada Limited ('CD') under the…

- **Court:** NCLT
- **Order date:** 6 Nov 2024
- **Citation:** TCN-2024-NCLT-00291
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sembmarine-kakinada-limited-eeb44fbf

## Summary

### Background

The case pertains to the liquidation of M/s. Sembmarine Kakinada Limited ('CD') under the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition by Axis Bank Limited. After failing to resolve the CD's insolvency during CIRP due to the termination of a land lease by Kakinada Seaports Limited, the RP filed an application for liquidation, which was approved by the NCLT. The liquidator was appointed, and efforts were made to sell the CD as a going concern. The Stakeholders' Consultation Committee (SCC) was formed, and multiple e-auction attempts were made. Ultimately, the CD was sold as a going concern to Anirudh Agro Farms Limited (AAFL). This application IA(IBC)/335/2024 was filed by

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## Facts

On 2019-09-23, Axis Bank Limited initiated the Corporate Insolvency Resolution Process (CIRP) against M/s. Sembmarine Kakinada Limited ('CD'). Mr. Om Prakash Agarwal was appointed as the Interim Resolution Professional (IRP) and later confirmed as RP. Due to the termination of a land lease by Kakinada Seaports Limited, the CIRP failed, and the RP filed an application for liquidation, which was approved on 2021-11-01. An advertisement was published on 2021-11-04 inviting claims from stakeholders, leading to the formation of the Stakeholders' Consultation Committee (SCC). 19 SCC meetings were conducted between 2022-01-07 and 2024-07-05. The CD was put up for e-auction, but initial attempts to sell it as a going concern failed. An offer was received from M/s. Anirudh Agro

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## Issues and analysis

### Issue 1: Whether the liquidation process of the Corporate Debtor, M/s. Sembmarine Kakinada Limited, should …

**Ratio:** Regulation 45(3)(a) of the Insolvency Board of India (Liquidation Process) Regulations,

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**Reasoning:** The court observed that the Corporate Debtor was sold as a going concern to M/s. Anirudh

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**Interpretation:** This regulation provides the legal basis for closing the liquidation process

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**Application:** Since the Corporate Debtor was sold as a going concern to M/s. Anirudh Agro

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Axis Ban…
- **Respondents:** Sembmarine…; Sembmarine…

## Timeline

- **2019-09-23 — CIRP Init…**: Axis Bank Limited's petition admitted, initiating CIRP against M/s. Sembmarine Kakinada…
- **2019-10-22 — RP Confir…**: Mr. Om Prakash Agarwal confirmed as Resolution Professional (RP) by the Committee of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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